Bitcoin (BTC) Price Weekly Forecast: Bulls Preparing For Larger Rally

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There is a strong resistance forming for bitcoin near the 8,200-8,300 area against the US Dollar.The price is placed nicely above the $7,840 and $7,600 support levels.There is a crucial contracting triangle forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).The pair is likely to break higher and surge once it clears the key $8,300 resistance area.Bitcoin price is holding gains above $7,800 and $8,000 against the US Dollar. BTC seems to be setting up for a monster bullish break above $8,300 in the near term.Bitcoin Price Weekly Analysis (BTC)This past week, bitcoin price corrected lower below $7,660 against the US Dollar. The BTC/USD pair even broke the $7,600 support level and traded as low as $7,474. However, dips remain protected and the price recently bounced back above $7,600 and $7,800. There was a strong upward move above the $8,000 level and the price remained well above the 100 simple moving average (4-hours). The price tested the $8,200 resistance level and it is currently correcting gains.An immediate support is near the $7,950 level. The main support is near the $7,840 level, and the 23.6% Fib retracement level of the recent wave from the $7,474 low to $8,200 high. More importantly, it seems like there is a crucial contracting triangle forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the triangle support at $7,840, the price could test the $7,600 support. The 100 simple moving average (4-hours) is also near the $7,600 level.If there is a daily close below the $7,600 and $7,500 levels, the price may perhaps start a strong downward move. Conversely, if there is an upside break above the $8,200 resistance, the price could start a strong rally. The next immediate resistance is at $8,300, above which the next target might be $8,500 or $8,800.Looking at the chart, bitcoin price is clearly forming a crucial breakout pattern with resistance near $8,200. A successful close above the $8,200 and $8,300 resistances is likely to start a strong upward move. If the bulls continue to struggle near $8,200 or $8,300, there might be a fresh decline. On the downside, the $7,500 support area holds the key. A successful close below $7,500 is likely to push the bulls on the back foot.Technical indicators4 hours MACD – The MACD for BTC/USD is likely to move into the bearish zone.4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the level 50 and it could move higher.Major Support Level – $7,500Major Resistance Level – $8,300

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